Contents
Introduction
The Agriculture Infrastructure Fund (AIF) is a transformative initiative by the Indian government, aiming to bolster the agricultural sector by providing financial support for infrastructure development. With a substantial allocation of ₹1 lakh crore, this scheme is designed to empower farmers, agri-entrepreneurs, and related stakeholders to enhance post-harvest management and community farming assets.
India’s agricultural sector is the backbone of the country’s economy, but for decades, farmers have faced challenges like poor storage, inadequate supply chains, and lack of infrastructure. To solve these deep-rooted issues and transform agriculture into a profitable, modern enterprise, the Government of India launched the Agriculture Infrastructure Fund (AIF) in 2020. This fund not only brings financial relief but also opens new doors for agri-entrepreneurs, startups, and cooperatives to build a stronger rural economy.
The Agriculture Infrastructure Fund is more than just a loan scheme — it’s a mission to revolutionize the way farming is done in Bharat. It enables the creation of scientific warehousing, cold storage, logistics, and processing units — assets that can drastically reduce crop wastage and increase the farmer’s profit margin. Whether you’re an individual farmer, a Farmer Producer Organization (FPO), or a cooperative society, this scheme can be your stepping stone to growth.
Understanding the Agriculture Infrastructure Fund
Launched in 2020, the AIF is a Central Sector Scheme that offers medium to long-term debt financing for investment in viable projects for post-harvest management infrastructure and community farming assets. The scheme is operational from 2020-21 to 2032-33, with loan disbursement scheduled until the end of the financial year 2025-26.
Key Features of the Agriculture Infrastructure Fund Scheme
- Financial Allocation: ₹1,00,000 crore dedicated to agricultural infrastructure development.
- Interest Subvention: 3% per annum interest subvention on loans up to ₹2 crore, available for a maximum period of 7 years.
- Credit Guarantee: Credit guarantee coverage for loans up to ₹2 crore under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme.
- Project Limit: Eligible entities can undertake up to 25 projects in different locations, each eligible for a loan up to ₹2 crore.
- Mandatory Contribution: Borrowers must contribute at least 10% of the total project cost.
Eligible Beneficiaries
The AIF scheme is inclusive, catering to a wide range of stakeholders in the agricultural sector:
- Farmers
- Farmer Producer Organizations (FPOs)
- Self Help Groups (SHGs)
- Agri-entrepreneurs
- Start-ups
- Primary Agricultural Credit Societies (PACS)
- Marketing Cooperative Societies
- Multipurpose Cooperative Societies
- Joint Liability Groups (JLGs)
- Local Body sponsored Public-Private Partnership Projects
- Central/State agency sponsored Public-Private Partnership Projects
This broad eligibility ensures that various entities involved in agriculture can access the benefits of the scheme.
Eligible Projects Under Agriculture Infrastructure Fund
The scheme supports a diverse range of projects aimed at enhancing agricultural infrastructure:
- Post-Harvest Management Projects:
- Warehouses
- Silos
- Cold Chain Facilities
- Pack-houses
- Sorting & Grading Units
- Assaying Units
- Primary Processing Centers
- Ripening Chambers
- Logistics Facilities
- E-marketing Platforms
- Community Farming Assets:
- Organic Input Production Units
- Bio-Stimulant Production Units
- Infrastructure for Smart and Precision Agriculture
- Supply Chain Infrastructure for Clusters of Crops, including Export Clusters
These projects aim to reduce post-harvest losses, improve storage and processing capabilities, and enhance the overall efficiency of the agricultural supply chain.
Application Process
Applying for the AIF scheme involves the following steps:
- Identify the Project: Determine the type of infrastructure project you intend to undertake.
- Prepare a Detailed Project Report (DPR): Outline the project’s objectives, financials, and expected outcomes.
- Approach Lending Institutions: Submit your application and DPR to scheduled commercial banks, cooperative banks, Regional Rural Banks (RRBs), Small Finance Banks, NBFCs, or the National Cooperative Development Corporation (NCDC).
- Loan Sanctioning: Upon evaluation, the lending institution will sanction the loan, applying the interest subvention and credit guarantee as applicable.
- Project Implementation: Utilize the funds to develop the proposed infrastructure, adhering to the project’s timelines and objectives.
For more information and to apply online, visit the official AIF portal.
Benefits to Beneficiaries
The Agriculture Infrastructure Fund offers numerous advantages:
- Financial Support: Access to substantial funding with favorable interest rates and credit guarantees.
- Infrastructure Development: Enhanced storage, processing, and marketing facilities leading to reduced post-harvest losses.
- Increased Income: Improved infrastructure enables farmers to get better prices for their produce.
- Employment Generation: Infrastructure projects create job opportunities in rural areas.
Conclusion
The Agriculture Infrastructure Fund is a golden opportunity for anyone involved in agriculture to build lasting assets, improve income, and reduce dependency on middlemen. With its generous loan support, interest subvention, and credit guarantee, the scheme removes major financial barriers that farmers and agri-entrepreneurs typically face. This is not just about growing crops — it’s about creating a self-reliant agricultural economy for the future of Bharat.
If you are eligible, don’t miss the chance to apply. Whether you’re looking to build a warehouse, a cold storage unit, or a smart processing facility — the AIF scheme has your back. Every farmer, FPO, and agri-startup should make the most of this initiative by enrolling, securing funding, and actively participating in the modernization of Indian agriculture. It’s time to shift from survival to success — and the Agriculture Infrastructure Fund is the bridge to that transformation.
